September 13, 2018

Increase Your Credit Score with Seasoned Tradelines or Authorized User Accounts

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The Definition of Tradelines:

Tradelines or Trade Lines are records that are given to credit report organizations. These reports include credit cards, a mortgage, and other lines of credit provided by financial lenders. Tradelines provide very detailed information about your account.  Tradelines are sometimes also called Authorized User Accounts.

The Significance of Tradelines:

Most people do not realize that public records, inquiries, and collections are not the leading items on their credit reports. Tradelines are the most commonly reported items on your credit report.

What Authorized User Tradelines Are:

An authorized user tradeline is a revolving credit card and the card holder allows someone to be on their account as an authorized user. This will show up on the authorized user’s credit report and give them a FICO score through this account. Accounts that have perfect payment histories, and use less than 10% of available credit, will get the maximum benefits. In many cases, it can increase an authorized user’s credit score by 30 to 60 points for each tradeline.

What Is A Seasoned Tradeline:

This is a tradeline that has a payment history. In order to be a seasoned tradeline depends on how long the payment history has existed. Some seasoned tradelines have perfect payment histories for 25 years or more!

Can Tradelines Increase Your Credit Score:

When you apply for credit or purchase items using your credit, lenders send information about your account and payment history to the three credit bureaus:

• Equifax
TransUnion
Experian

Your credit score is a complicated numerical calculation to determine your credit stature. This information will determine your FICO score and the score determines your level of risk to lenders when you apply for further credit. The higher your score, the lower your risk, increasing your chances of getting a loan with a lower interest rate.

Credit Scores Are Broken Down Into Different Factors:

• 10% of your score is based on new credit.
• 10% is based on the different types of credit you have (revolving, installments, etc).
• 15% is based on the length of your credit history.
• 30% is based on your debt ratio which means how much of your current credit you are using.
• 35% is based on your payment history.

When you add an authorized user tradeline to your credit report, you are adding a positive payment history, the amount of time you have established credit, and exhibiting responsible use of your credit by having an account with a low debt ratio.

Will A Tradeline Work For Anyone?

Although this program will work for many people, it’s not for everyone. When we spoke of “qualified authorized users”, this is regarding how much your credit score will increase. There are a few factors that should be taken into consideration when deciding whether someone is or is not an ideal candidate for this program.

The most critical factor is your credit history over the past 2 years. This will usually allow you a higher credit score increase. If you have experienced a few problems over the past few years, you might not see an increase in your score. It is a gamble and you might see less of an increase than you were looking for.

With this program, it’s pretty rare that someone would not receive an increase by adding a tradeline, but might not be what you were hoping for. Our credit tradeline experts are available to consult with you regarding your situation and give you the tools you need to determine your level of success vs the risks of having this program.

How Long Does It Take To Show Up On Your Credit Report:

The standard time for processing is between 6 to 8 weeks after receiving your agreement. Once the tradeline has been reported, you will immediately see your increase. If you have a certain deadline and want to ensure your line is reported faster, there could be sometimes an expedited process for a certain percentage upcharge depending on the provider. This will guarantee the tradeline is placed on your credit within 30 days most of the time.

How Long Will A Tradeline Stay On Your Report:

The average time a tradeline will remain on your report is between 3 to 6 months. Keep in mind, authorized user tradelines are only a temporary solution. It is highly recommended that you apply for whatever your credit goals are, right away.

It is in your best interest to use your credit as soon as possible once the tradeline is posted.

How Much Will Your Credit Score Increase:

Our tradeline expert will review your credit report during the free consultation. Your report will be evaluated and once there is an understanding of your overall goals, we will decide the best avenue of action for you needs. We have helped many people receive a modest increase and have also raised scores over 200 points. Every situation is unique and unto itself.

How Much Does A Tradeline Cost:

This all depends on the credit limit and the age of the credit line. We will answer all your questions and concerns during your free consultation. You should ask yourself, how much do I need to raise my score to meet my goals?

Is It Legal:

Yes.  Credit sharing has been going on for over 40 years with the enactment of The Equal Credit Opportunity Act of 1974. This allows people to attach accounts to someone else to raise credit scores.

Approximately 10 years ago, credit card companies started offering their customers an Authorized User option. It’s designed for those with good credit to help their family and friends to get access to credit, establish credit, and improve their credit history.